NBR- How hard to get another home loan?

Nancy_Drew · June 2011

I know there has been some talk fairly recently about how hard it is to obtain a second mortgage for a investment property. (or to buy a new place to rent the current). I can't find the posts now and would like some info.

specifically, we are toying with the idea of buying a foreclosed home (TOTAL fixer upper) and rent it to my in- laws.

So to those that have done this recently, (Nykola?) any advice as we start to look into this?

blueLu25 · June 2011

We are buying a foreclosed home and are using Mortgage Advisory Group. They deal with these sort of situations a lot, and it would be helpful just to meet with someone or email with questions and get some advice for your situation. We have a strange situation and they are really nice about it and got us a loan no prob! I think its just easiest to call and ask!

koosh ball · June 2011

We did it the opposite way... I owned a condo before we got married and we bought a townhouse. We rent the condo out. It was no problem getting another loan with the condo that has a mortgage. Going the other way around is a bit more work though.... you will need to get financing that supports rentals (itll be a higher rate). Banks might require more down and/or have less loan packages.

preston18 · June 2011

We recently considered buying a foreclosure and either renting our current home out or selling it. The house we looked at was going to auction so a whole different set of rules applied (auctions usually require cash upfront). I spoke with Chris Nelson at this group (on the advice of my realtor) and he was a great resource. The home we looked at would need a construction loan it was such a mess, but with a good income, high credit scores and a low debt to income ratio, my mortgage broker was not at all concerned about securing financing.

In the end the house sold for more than our maximum bid price so I figure we just saved years of headaches for a potential teardown on a sloped lot with a stream (stupid wetlands guidelines).

jcyahne · June 2011

In early 2008 we had two mortgages for a short while. We decided to move and made an offer on a foreclosure in Maple Valley. Buying that house was just like buying any other house except that we had to deal with a bank rather than a home owner. Also there was no chance that the bank would be willing to fix anything that was wrong with the home (we still did an inspection though). To get the second mortgage, I just called BECU and we had enough credit to qualify. So we then moved, sold our old house once it was vacant, and went back down to one mortgage. So it was a different situation in that it was not an investment property. If I were in your shoes, I would begin by meeting with a mortgage broker or calling banks you are likely to lend from to see how the process works with them.

pixelvixen · June 2011

Are you refinancing your current house and using the equity to buy another, or just asking for more money? If you qualify, the latter will go MUCH quicker and easier. Refinancing sucks donkey balls.

Nancy_Drew · June 2011

Kim- we just wanted to just get another mortgage outright.

According to the mortgage calculators, the payment would be less than my monthly car payment!

We plan to start by talking to a real estate broker/agent. (Annette's DH) but perhaps we should talk to a mortgage person first?

pixelvixen · June 2011

I would totally take to a bank/mortgage guy first... then you don't get your hopes up for something that may not work out the way you want it to. No broken dreams!!

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